Breakdown of expected savings by Canada Post under 5-stage plan to cut $900M

Canada Post is hoping to offset rising costs and falling mail volumes with a five-stage plan that will help save up to $900 million a year.

Here is a breakdown of the savings Canada Post expects to achieve per year with its plan to eliminate door-to-door service and increase the price of stamps:

— Between $400 million and $500 million through the use of community mailboxes instead of home delivery.

— About $160 million to $200 million as a result of new stamp prices, which will increase by 35 per cent to 85 cents per stamp when purchased in a booklet, starting March 31.

— About $40 million to $50 million as it sets up more franchise postal outlets in stores across Canada.

— Between $100 million and $150 million from streamlining operations by focusing on faster computerized sorting equipment and a central sorting location that Canada Post says will lead to a more efficient flow of parcels and mail.

— An unspecified amount from the reduction of between 6,000 and 8,000 positions, mainly through attrition.